GCC Indirect Tax Weekly Digest

UAE: Voluntary Disclosure function now available

In UAE, taxpayers now have the ability to submit voluntary disclosures via the e-services portal. No user guide has, to date, been published by the FTA. We will however, monitor this situation and update our clients once a guide has been released. 

As per Article 8 of Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures, voluntary disclosures are required to be made in the following cases:

• where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, by more than AED 10,000;
• where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, by not more than AED 10,000 and there is no Tax Return through which the error can be corrected; or
• Where a filed Tax Refund Application is incorrect, resulting in a calculation of a refund to which the Taxpayer is entitled being more than the correct amount, unless the error was a result of an incorrect Tax Return or Tax Assessment.

The voluntary disclosure can be submitted by selecting a button marked ‘Submit Voluntary Disclosure’ which should now appear next to each submitted return (on the VAT returns screen of the user’s e-services portal). A separate tab in the return,  marked ‘VAT 211  – VAT Voluntary Disclosure / Tax Assessment’, provides further details of the treatment of each of the options above. 

The voluntary disclosure must be made within 20 business days of discovering the error or penalties may apply. 

If you would like to discuss voluntary disclosures in the UAE further then please reach out to our contacts listed below or your usual Deloitte contact.  

GCC Exchange now accepting VAT payments on behalf of the FTA

Following the announcement last week of alternative VAT payment options in the United Arab Emirates (UAE), the GCC Exchange, a money transfer and foreign exchange provider in the UAE, has announced that it can accept VAT payments on behalf of the Federal Tax Authority (FTA).

Taxable persons registered with the FTA who have a valid TRN and GIBAN bank account number can apparently make VAT payments at any GCC Exchange branch in the UAE.

Please note that the TRN certificate must be presented in order to process the VAT payment.

Please note that this digest is for information purposes only and should not be construed as an advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.